Colorful Ollie's Bargain Outlet, which advertises itself as having "Good Stuff Cheap" continues to grow at a rapid pace. Earnings growth has ranged from 38% to 145% the last four quarters and its sales growth rate rose every quarter this past year. This rapid growth is lifting Ollie's stock.
It's no surprise that Ollie's stock on Thursday got an IBD Relative Strength Rating upgrade from 70 to 77, just below a key benchmark.
Ollie's Stock Ascends In Sync With Rising Profits, Sales
Ollie's rapid earning and sales growth comes amid continued expansion. The company says on its website it plans to open its latest store in Joplin, Mo., on April 17. That will boost the total to around 514 stores. It also recently opened new stores in New York state, Texas and South Carolina.
Meanwhile, last quarter Ollie's reported 46% earnings growth to $1.23 per share on an 18% hike in revenue to $649 million. The prior three quarters earnings grew 145%, 205% and 38%. Revenue grew 13%, 14% and 15% during that time period.
The upgraded 77 Relative Strength Rating puts Ollie's stock within shouting distance of a breakthrough. CAN SLIM investors look for stocks with an RS Rating north of 80 in the early stages of their moves. See if Ollie's Bargain Outlet can continue to rebound and hit that benchmark.
When To Sell Stocks To Lock In Profits And Minimize Losses
Among its other key ratings watchlist candidate Ollie's stock has an 83 Composite Rating out of 99. The Composite Rating combines IBD's other ratings into a single rating measuring overall strength.
Further, Harrisburg, Pa.-based Ollie's also has an 85 EPS Rating and a terrific A SMR Rating on an A-to-E scale with A tops and E dismal. Its C Accumulation/Distribution Rating shows that institutional investors like mutual funds and ETFs are buying about as many shares as selling.
78% Stock Price Increase In 15 Months.
In late December 2022 Ollie' stock hit a 44.72 low and turned up. It's risen 78% in the last 15 months, and traded at 78 Thursday afternoon. It's consolidating and doesn't show an ideal buy point right now. See if it goes on to form and break out of a proper base.
Ollie's stock holds the No. 2 rank among its peers in the Retail-Discount & Variety industry group. China-based Miniso Group is the top-ranked stock in the group. BJ's Wholesale is No. 3 in the group.
The exclusive Relative Strength Rating from Investor's Business Daily identifies price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
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